Examining the link between marketing controls and firm performance: The mediating effect of market-focused learning capability

Xiaoning Liang, Johanna Frösén

Research output: Contribution to journalArticleScientificpeer-review

2 Citations (Scopus)

Abstract

This study builds on parallel structural equation modeling (SEM) and fuzzy set Qualitative Comparative Analysis (fsQCA) to explore how formal and informal marketing controls affect firm performance by enhancing a firm's market-focused learning capability. The SEM results reveal that formal controls have a direct impact on market-focused learning capability and, thereby, firm performance, while informal controls strengthen this positive impact. Furthermore, results from fsQCA suggest that all configurations associated with high market-focused learning and/or high firm performance reflect high informal controls. Taken together, these results imply that informal controls serve as “hygiene factors” that are necessary but not sufficient to generate market-focused learning capability or firm performance. Finally, a firm's business strategy (i.e., cost leadership, differentiation or a dual strategy) is found to moderate the effectiveness of marketing controls: firms with a dual strategy benefit more from informal controls, while those with a clear strategy reap more benefits from formal controls.
Original languageEnglish
Peer-reviewed scientific journalJournal of Business Research
Number of pages12
ISSN0148-2963
DOIs
Publication statusPublished - 23.01.2019
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Marketing controls
  • Market-focused learning capability
  • Structural equation modeling
  • Configuration analysis
  • Marketing Effectiveness and Profitability

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